Private sector wants in on oil industry
By Psyche Pascual
Daily Journal Staff
President Jaime Lusinchi' s
trip to Japan became a source
of complaints Tuesday from
private businessmen who
want to get a piece of the
action in the petroleum in-
dustry.
Venezuelan Petroleum
Journal
Chamber President Edgard
Romero Nava used the presi-
dential trip to highlight what
he called "inequities'' and
"-contradictions" in the na-
tionalized oil industry.
Romera Nava called for a
loosening of the petroleum
laws to encourage Venezue-
lans to invest in domestic oil
ventures. He also called for
reforms to consolidate a bank
of laws into one.
"We're not talking about
denationalization of the in-
dustry" Romero Nava
said.
"But 1 foreigners can enter
(the petroleum industry), why
can't Venezuelans?''
Critics of those laws have
been battling for nearly a
decade. According to Romero
Nava, two commissions were
named in 1981 and in 1984 to
study those laws, but he says
Energy and Mines Ministry
06. 04. 1988
has always shelved their rec-
ommendations.
Romero Nava' s comments
casts a slight shadow on Lu-
sinchi' s much-heralded trip
through Asia, which includes
Japan and Indonesia.
Scheduled to be signed
during that trip is an agree-
ment -with Mitsubishi .of
Japan for the sale of Or-
imulsion.
Government and oil of-
ficials hope Orimulsion -- a
fuel developed by Venezue lan
researchers and composed of
heavy crude, water and
chemicals - will be the key to
lift the country from the past
few months of sagging oil
prices.
· Less than two months ago,
the chamber president Jauded
the plan to push compound
into overseas markets.
It promises to be a lucrative
market for Venezuela. Plans
are to begin exporting about
50,000 barrels a day of Or-
imulsion by the end of 1989,
and up to 1 million barrels a
day by the year 2000, ac-
cording to industry esti-
mates.
The problem isn't Japan 's
participation or that of any
other country, Romero Nava
said, but the irony that V ene-
zuela' s own laws prevent the
commercialization of or-
imulsion within the country.
That has .limited the role of
domestic businessmen.
Venezuela nationalized its
oil industry in 1975 when
Congress approved the pre -
troleum nationlization law.
The law created Petroleos
de Venezuela, S A,A., which in
turn created a host of sub-
sidiaries and related
divisions.